THE Senate on Tuesday unanimously adopted Senate Resolution 22-9 urging the Gov. Ralph DLG Torres to exercise his authority to expedite the implementation of the child tax credit “to benefit the people of the Commonwealth.”
The resolution was co-authored by the Senate’s minority bloc members, Paul A. Manglona and Edith Deleon Guerrero.
If the governor does not exercise his authority, they said, “the new expanded tax credit will be issued as a lump sum next year after families file their 2021 tax returns.”
The resolution added that child tax credit “has been greatly expanded by the American Rescue Plan Act of 2021. While the 2020 credit was partially refundable, the 2021 credit is fully refundable and, in addition, the 2021 child tax credit will be distributed to eligible taxpayers in advance payments as early as July 2021.”
A day before the Senate adopted the resolution, the Department of Finance-Division of Revenue and Taxation notified the public that the implementation plan for the Expanded Child Tax Credit for 2021 pursuant to the American Rescue Plan “is currently being developed for a target issuance by July 2021.”
From July through December 2021, the governor’s office stated, up to half the credit will be advanced to eligible families. DRT anticipates that the plan will allow estimated advance payments based on the 2020 return, or if not available, the 2019 return.
“For that reason, the DRT urges families to file their 2020 return as soon as possible to avoid any delays. This includes many low-and moderate-income families who don’t normally file returns,” the governor’s office stated.
DRT “will launch an online portal for taxpayers to update information such as a change in the number of qualifying children, marital status, or significant change in income. Additionally, the portal will allow taxpayers to submit or update their banking information for direct deposit payments.”
DRT will issue further guidance once the plan is finalized and approved, the governor’s office stated.
